Google is requesting Microsoft to pay a hefty fee for use of its 50 H.264 video standard patent which it acquired from Motorola. These patents are used for accessing video services over Wifi. Google is claiming Microsoft to pay 22.50 USD for every Microsoft Windows laptop less than or equal to 1000 USD. The patent fee doubles for laptop that are 2000 USD worth. This price is ridiculous when compared to the amount that Microsoft currently pays for use of 2000 odd licenses – which is less than 2 cents to 29 companies. Not sure if this fee would be for the video access over Wifi for the Windows mobile and tablets.
Microsoft is ready to pay for a fee that is justifiable and not ready to pay such a huge amount. I think the huge fee is an attempt for the patent fee that Microsoft charges Google for every android phone activation. Microsoft has filed a compliant with the European Commission and the US. Department of Justice seeking investigation the patent fee.
Here is a report from Dave Heiner, Corporate Standards, Microsft. Snippet of the blog post is as below:
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There is an obvious way out of all this. Motorola should honor its promises, and make its standard essential patents available on fair, reasonable and nondiscriminatory (FRAND) terms. Microsoft is certainly prepared to pay a fair and reasonable price for use of others’ intellectual property. Within just the past few years, Microsoft has entered into more than a thousand patent licenses. We know how it’s done.
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